Mortgage refinancing is a big decision, and it could save you a lot of money if you do it right. Since interest rates are changing constantly, here are some things to consider.

 Your Type Of Mortgage

One of the things to consider is the type of mortgage you have now. The variable rate mortage was very popular until recently, but with six successive interest rate increases you may seriously want to think about changing to a fixed rate mortgage. By locking in the interest rate you may have to pay higher monthly payments initially, but this should protect against future interest rate increases.

 Your Credit Score

The mortgage rate you qualify for is based on your credit score. Your credit score or credit rating is an indication of your credit worthiness. The higher your score, the better, since this will help you to qualify for low interest loans. If you have an average score you should be on the watch for lenders who use this as an excuse to charge you a higher interest rate.

The higher the interest rate lenders can charge you, the bigger their profit at the end of the day. It is their nature of business, they will make you pay as much as they could possibly squeeze out of you.

Maintain a healthy credit score by always paying the full amount that is owed on your accounts and make sure payments remain on time every month. If you are unable to make a payment due to unforeseen events contact your creditor and make alternative arrangements.

“We’ve found it increasingly difficult to keep up with all our accounts every month and so we decided to consolidate our debt… With Zulika’s help we’ve improved our cash flow with R5,312 pm and this was by far the easiest financing that we’ve ever got.” F.Rheeder, Jhb,  South Africa

Shop Around

Every year thousands of people are losing money during the mortgage refinancing process. If you overpay for your new mortgage in interest and other costs, you will end up paying for your mistakes every month for the next twenty years.

It is always a good idea to make use of the services of a mortgage broker, who would be able to negotiate substantial savings on your behalf.

To apply for a home loan OR refinancing No-Obligation Quote you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.

There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

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